We’ve all had that moment. 

You’re on a discovery call with a potential client and after everything is said and done, it’s time for “the talk.” Or maybe you’ve spent hours setting up your booth at a local market, when someone asks, “You want how much for this?!”

The pricing talk. 

They, understandably, ask about your rates and suddenly you start backtracking, thinking of all the add-ons, bonuses, extra features, or credentials you could tack on to justify your pricing. 

Because like most creatives, setting prices you can stand behind is intimidating. It’s natural to feel like you need to pile on more deliverables, extend your available hours, or tack on fancy bells and whistles to prove to your clients that your work is worth their investment. 

But the truth is the problem has never actually been about your price. 

It’s not even your offer. It all comes down to your mindset and how YOU perceive your creative work. Because how you view your work is ultimately how you present it to clients.

So today we’re going to tackle the mindset and mechanics of value-based pricing head on so you can recognize, articulate, and appropriately charge prices that reflect the true value you deliver in your creative business. 

The Real Cost of Underpricing

Before we dig into the “how-to’s” it’s important to get honest about what underpricing is really costing you as a creative entrepreneur. 

1. Every hour you spend over delivering for too little pay is an hour you can’t pour into something ELSE that matters to you. Whether it’s advancing your skills, carving out creative time, or being on time at the bus stop for after school pick up, your time has an assigned worth depending on your values, goals, and priorities.
   
   
2. If you’re stretching yourself too thin across too many underpaying projects, your best creative work doesn’t stand a chance. Creativity craves time, space, and breathing room. Sure, sometimes pressure can help us rise to the occasion. But all the time? Non-stop? That’s down right unsustainable. 
   
   
3. Financial stress and uncertainty blocks the mental space you need to be creative and come up with new ideas. This is why I push so hard against the starving artist myth! Financial stability is important– it allows you to work with the right people on the right projects at the right pace while making sure you can cover your personal and business expenses. You’re not going to come up with your best ideas if you can’t cover next month’s rent. Plain and simple.

And even more importantly? Underpricing actually undercuts the perceived value of your work. Not just for you, but potentially for your whole industry (no pressure). When you present premium quality work but attach a discounted price tag, you create cognitive dissonance that could make clients question your expertise, credibility (ouch!), authenticity, and even the quality of your work. 

Take Inventory

Okay. Now that you know what’s at stake, it’s time to take inventory of your creative business “value.” Now, it’s not just another feel-good exercise to boost your self-esteem – although it should! It’s about gathering cold, hard facts so that you can clearly see the impact of your creative work (and then share that with others).

Before you get started, I highly recommend you clear your desk except for a piece of paper and a pen. No distractions. Turn off your notifications, close your email tab. Give this task your full attention because this exercise is going to help you build the foundation of your new pricing strategy. 

Document the following:

• Every major project milestone you’ve achieved
• Technical skills you’ve mastered (be as specific as possible)
• Problems you’ve solved for clients (look back at client testimonials for inspiration)
• Unique processes or approaches you’ve developed
• Industry knowledge that ‘s become second nature to you (but others probably don’t know)
• Positive outcomes your work has created for yourself or your clients (could be numbers-based, but could also be impact-related)

Review this list and take some time to highlight any items that make you think, “anyone could do that.” Chances are that’s not true and those are most likely your most coveted, valuable skills. They only seem basic because you’re so good at them!

Strategize with Social Proof

When was the last time you looked at your client surveys or testimonials? Probably when you updated your website or needed a quick pick me up. 

But the truth is, your testimonials aren’t just good marketing or ego-boosting tools. They can help you with your pricing by validating the outcomes you provide. 

It’s time to let your clients do the talking! Here’s how to gather and present social proof in a way that will actually help you feel more confident in your pricing.

Carve out some CEO Time to:

1. Capture specific results your work has achieved. For example, if you’re a web designer, you might note that your last homepage redesign project increased your client’s conversion rate from 1.2% to 3.8%. 
   
   
2. Document and request positive client feedback as soon as it happens. Don’t wait until the end of a project to ask for feedback. In the moment testimonials right after a big win or breakthrough are often best because the feedback you get in real time is more accurate and specific than in hindsight. 
   
   
3. Track the improvements you’ve delivered. This might include before and after analytics, and/or client business outcomes (i.e. new leads, sales, customer satisfaction scores). Keep a “swipe file” for excited client emails or messages.

Once you build this out, set up a simple system (seriously, a basic Google Doc or spreadsheet will do), document what you’ve discovered, and then update it with future wins in real time.  The key is to capture them when they happen instead of trying to remember them during your next pricing conversation (wishing you had asked that client to share their feedback).

Communicate Your Value

Once you’ve proven to yourself that your prices are properly priced (because you’re often your biggest critic), it’s time to translate what you’ve learned into words your ideal customer can understand. The words you choose when talking about pricing literally shape how your rates are perceived!

Confidence and clarity are key. 

For example. What would make you, as a buyer, feel more confident?

1. “Would $X work for your budget…?”
2. “My rate for this project is $X.”

It probably isn’t hard to tell that while A comes across as weak and unsure (almost bargain-like as if there’s room for negotiation), B comes across as clear, assertive, and strong.

Next time you hop on a sales call, have your pricing (including deliverables and timelines) and even a brief script handy. Not to recite word for word, but to hold yourself accountable to your pricing and how you speak about it! I encourage you to create that script and then practice it (yes, out loud!). The more you practice it the more natural it will become. 

It’s Not Just About You

At the end of the day, yes, your pricing needs to cover your expenses and allow you to pay your bills and live the lifestyle you desire. 

But pricing appropriately for the skills and expertise you bring to the table isn’t just about you. 

Fair pricing also allows you to better serve your clients. And at the end of the day, when you are properly compensated, you can focus on delivering excellence in every product you make or service you provide while creating a memorable client experience. 

What You Really Need To Match Your Pricing with Your Value

You don’t need to overhaul your entire business or overextend yourself to feel comfortable charging more for your creative work. 

All you really need is to:

1. Recognize the value you already provide 
2. Create a system to document your value
3. Present the value and outcomes you deliver clearly
4. Price in a way that reflects that impact

Now, it may sound easier said than done. Nothing worthwhile happens overnight. Building your skills as a creative has taken time and energy. Feeling confident about your pricing most likely will too. But, by reading this blog you’ve already started closing the gap between your actual value and your current pricing. 

Ready for more?

Want to put these concepts into practice, but not sure where to start? The Pricing Mini-Course expands on everything we’ve covered, giving you the complete toolkit to implement value-based pricing in your creative business.

Knowing you should charge more is one thing — having the tools, systems, and confidence to actually do it is another. And while value-based pricing is my favorite pricing strategy, it also needs to factor in things like your business expenses and overhead as well as your personal lifestyle expenses!

That’s exactly why I created the Pricing Mini-Course for Creative Entrepreneurs. 

Inside you’ll find:

• 8 video lessons (15-20 minutes each)
• Self-paced modules
• Lifetime access to materials
• Regular content updates

All for a no-brainer price of $47.